Aware of the power and progress dictated by technology on the world stage, the United States implemented the CHIPS and Science Act, but the 2.0 update is awaited. This regulation, activated on August 9, 2022, allocates about $280 billion to increase research and production of semiconductors within the country.
US Secretary of Commerce Gina Raimondo has recently highlighted the vital need for these subsidies. At an Intel event, she mentioned that the amount allocated probably won’t be enough to secure a global dominant position in semiconductors. This statement suggests the possibility of a second CHIPS Act, to maintain support for the sector.
The semiconductor industry is changing at a rapid pace, particularly due to the increase in demand for artificial intelligence (AI) chips. Raimondo has spoken with technology leaders, such as OpenAI’s Sam Altman, about this growing need. The Secretary sees a future where demand will exceed current productive capacity, indicating the urgency of new investments and legislation.
Future CHIPS 2.0 Act
A future CHIPS 2.0 Act would facilitate the creation of new foundries and semiconductor companies in the US. This would respond to the demand for AI chips, in addition to being able to generate a surplus, allowing more companies to incorporate AI into their operations. Although funds from the original CHIPS Act are still being distributed, new investments have already been announced to strengthen semiconductor research.
The effect of the CHIPS Act has been felt globally, pushing other nations to develop similar strategies. Europe, for example, has promised significant investment (€ 43 billion) to strengthen its position in the semiconductor market.
So far, the US has allocated a portion of the CHIPS Act funds through direct financing and loans, supporting leading companies in the sector. With giants like Intel seeking financing, the future of semiconductor manufacturing in the US looks bright. However, achieving a global leadership position in semiconductor technology will require an even greater and progressive effort.
Featured image: Juan José Leiva – generated with AI